SFC unveils new regulatory framework to allow secondary trading of tokenised SFC-authorised investment products

On 20th April 2026, The Securities and Futures Commission (SFC) launched a pilot regulatory framework for the secondary trading of tokenized SFC-authorized investment products, primarily focusing on open-ended funds via licensed virtual asset trading platforms (VATPs). This initiative aims to enhance market liquidity and retail accessibility by enabling 24/7 trading, facilitated by regulated stablecoins and tokenized deposits for seamless settlement.The framework responds to the rapid expansion of Hong Kong’s tokenized asset sector, where assets under management reached $10.7 billion as of March 2026—a seven-fold year-on-year increase. To ensure market integrity, the SFC has established comprehensive requirements for fair pricing, orderly trading, and investor protection, drawing from established ETF and VATP infrastructures.Initially targeting tokenized money market funds, the SFC will monitor pilot operations before considering a broader product rollout. This development represents a strategic integration of traditional securities with the Web3 ecosystem, reinforcing Hong Kong’s position as a premier hub for digital asset innovation. Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=26PR59